Bankruptcy Act 1966

PART VI - ADMINISTRATION OF PROPERTY

Division 1 - Proof of debts

SECTION 82 DEBTS PROVABLE IN BANKRUPTCY

82(1)
Subject to this Division, all debts and liabilities, present or future, certain or contingent, to which a bankrupt was subject at the date of the bankruptcy, or to which he or she may become subject before his or her discharge by reason of an obligation incurred before the date of the bankruptcy, are provable in his or her bankruptcy.

[ CCH Note: Modification Declaration FRLI No F2021L00261 ( Bankruptcy Regulations 2021 : FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)

Subsection 82(1) of the Act is modified by substituting " the estate of a deceased debtor was subject at the day of the order for the administration of the estate, or to which the estate may become subject because of an obligation incurred before that day, are provable in the administration of the estate " for all the words from and including " a bankrupt " to the end of the subsection.]

View history note

History

S 82(1) amended by No 150 of 2003, s 3 and Sch 2 item 96, by repealing the note at the end, effective 1 January 2004. The note formerly read:

Note: The operations of this section in relation to accumulated HEC debts and semester debts under the Higher Education Funding Act 1988 is affected by section 106YA of that Act.

S 82(1) amended by No 86 of 2001, s 3 and Sch 2 item 1, by inserting the note at the end.

Act No 86 of 2001, s 3 and Sch 2 item 4, contained the following application provision:

4 Application
(1)
Subject to subitem (2) the amendments apply to bankruptcies for which the date of the bankruptcy is after the introduction day.

(2)
The amendments do not apply to a bankruptcy if:

(a) a declaration was presented by the debtor under section 54A of the Bankruptcy Act 1966 on or before the introduction day; and

(b) the declaration was accepted under section 54C of that Act on or before that day; and

(c) the date of the bankruptcy is after the introduction day, but within the period of 6 days after the day on which the declaration was accepted.

(3)
To avoid doubt, the amendments do not affect the interpretation of the Bankruptcy Act 1966 or the Higher Education Funding Act 1988 in relation to bankruptcies to which those amendments do not apply.

(4)
In this item:
introduction day
means the day on which the Bill that became the Higher Education Funding Amendment Act 2001 was introduced into the House of Representatives.

the date of the bankruptcy
has the same meaning as in the Bankruptcy Act 1966 .

82(1A)
Without limiting subsection (1) , debts referred to in that subsection include a debt consisting of all or part of a sum that became payable by the bankrupt under a maintenance agreement or maintenance order before the date of the bankruptcy.

[ CCH Note: Modification Declaration FRLI No F2021L00261 ( Bankruptcy Regulations 2021 : FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)

Subsection 82(1A) of the Act is modified by substituting " deceased debtor under a maintenance agreement or maintenance order during the person ' s lifetime and before the date of the order for the administration of the deceased debtor ' s estate " for " bankrupt under a maintenance agreement or maintenance order before the date of the bankruptcy " .]

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82(2)
Demands in the nature of unliquidated damages arising otherwise than by reason of a contract, promise or breach of trust are not provable in bankruptcy.

82(3)

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Penalties or fines imposed by a court in respect of an offence against a law, whether a law of the Commonwealth or not, are not provable in bankruptcy.

View history note

History

S 82(3) amended by No 86 of 2002, s 3 and Sch 4 item 10, by substituting " Penalties " for " Subject to subsection (3A), penalties " , effective 1 January 2003.

Act No 86 of 2002 contained the following application provision:

12 Application - existing proceeds of crime orders
12(1)
The amendments of section 82 of the Bankruptcy Act 1966 made by this Schedule apply, in relation to any bankruptcy for which the date of bankruptcy is not before the commencement of this Schedule, to any orders made under a proceeds of crime law before or after that commencement.

12(2)
In applying that section for the purposes of subsection 231(2) of that Act, in relation to any deed of assignment that was not executed before the commencement of this Schedule, that section as so amended applies to any orders made under a proceeds of crime law before or after that commencement.

12(3)
In applying that section for the purposes of subsection 237(2) of that Act, in relation to any deed of arrangement that was not executed before the commencement of this Schedule, that section as so amended applies to any orders made under a proceeds of crime law before or after that commencement.

12(4)
In applying that section for the purposes of subsection 243(1) of that Act, in relation to any composition that was not accepted before the commencement of this Schedule, that section as so amended applies to any orders made under a proceeds of crime law before or after that commencement.

S 82(3) amended by No 73 of 1987, s 8(a).

82(3AA)

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An amount payable under an order made under section 1317G of the Corporations Act 2001 is not provable in bankruptcy.

View history note

82(3AB)

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A debt incurred under any of the following is not provable in bankruptcy:

(a) Part 4-1 of the Higher Education Support Act 2003 (HELP debts);

(aaa)

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Part 3A of the VET Student Loans Act 2016 (VETSL debts);

(aa)

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Part 2AA.3 of the Social Security Act 1991 (student start-up loan debts);

(ab)

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Division 3 or 4 of Part 2 of the Student Assistance Act 1973 (ABSTUDY student start-up loan debts);

(b)

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Part 3.1 of the Australian Apprenticeship Support Loans Act 2014 (Australian apprenticeship support loan debts).

View history note

82(3A)

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An amount payable under an order made under a proceeds of crime law is not provable in bankruptcy.

View history note

82(3B)
A debt is not provable in a bankruptcy in so far as the debt consists of interest accruing, in respect of a period commencing on or after the date of the bankruptcy, on a debt that is provable in the bankruptcy.

View history note

82(4)
The trustee shall make an estimate of the value of a debt or liability provable in the bankruptcy which, by reason of its being subject to a contingency, or for any other reason, does not bear a certain value.

82(5)

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A person aggrieved by an estimate so made may appeal to the Court not later than 28 days after the day on which the person is notified of the estimate.

View history note

82(6)
If the Court finds that the value of the debt or liability cannot be fairly estimated, the debt or liability shall be deemed not to be provable in the bankruptcy.

82(7)
If the Court finds that the value of the debt or liability can be fairly estimated, the Court shall assess the value in such manner as it thinks proper.

82(8)
In this section, liability includes:

(a) compensation for work or labour done;

(b) an obligation or possible obligation to pay money or money ' s worth on the breach of an express or implied covenant, contract, agreement or undertaking, whether or not the breach occurs, is likely to occur or is capable of occurring, before the discharge of the bankrupt; and

(c) an express or implied engagement, agreement or undertaking, to pay, or capable of resulting in the payment of, money or money ' s worth, whether the payment is:

(i) in respect of amount - fixed or unliquidated;

(ii) in respect of time - present or future, or certain or dependent on a contingency; or

(iii) in respect of the manner of valuation - capable of being ascertained by fixed rules or only as matter of opinion.

[ CCH Note: Modification Declaration FRLI No F2021L00261 ( Bankruptcy Regulations 2021 : FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)

Subsection 82(8) of the Act is modified by substituting " end of the administration of the deceased debtor ' s estate " for " discharge of the bankrupt " in para (b).]

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